[cmcaleer]

I always thought that Fight Club quote missed a crucial extra number: D, the cost of brand reputational damage. Maybe best expressed as multiplier <1 on revenue that converges towards 1 over time.

Maybe a decade from now this becomes a semi-obscure bit of gun lore and SIG US more or less recovers.

But right now?

If you’re in the market for a handgun, or any gun for that matter, are you going to touch SIG US’s stuff? Maybe, but there are customers who might just say that they don’t want to take that chance and go with Glock or whoever else. Do those customers come back? Why doesn’t this get brought up at every single bid for a contract SIG US makes from now on?

It’s possible that they’re still making the right EV call of course, but the medium-term hit they’re taking from a flaw like this that you don’t make right has to be massive.